SPDR® S&P 1500 Momentum Tilt ETF (MMTM)MMTM

ETF SPDR® S&P 1500 Momentum Tilt ETF - Summary

Profile: The ETF SPDR® S&P 1500 Momentum Tilt ETF (MOM) focuses on large- and mid-cap US stocks with strong momentum characteristics. It primarily invests in equities (approximately 99.5%) across various sectors, with the largest allocation to information technology (26.65%). The ETF employs a quantitative strategy, selecting stocks based on their historical price momentum and relative strength.

Objective: MOM aims to outperform the S&P 1500 Index by capturing stocks with positive momentum characteristics.

Issuer: State Street Global Advisors (SSGA) is the issuer of MOM.

• Reputation and Reliability: SSGA is a renowned asset management firm with a long and established track record, managing over $4.3 trillion in assets as of September 30, 2023.
• Management: The portfolio management team responsible for MOM comprises experienced professionals with expertise in quantitative analysis and index investing.

Market Share: MOM holds a market share of approximately 0.3% within the large-cap blend ETF category.

Total Net Assets: As of November 2, 2023, MOM has approximately $1.9 billion in total net assets.

Moat: MOM's moat lies in its unique index-tracking strategy. By focusing on momentum stocks, the ETF aims to generate superior returns compared to traditional broad market indices. Additionally, SSGA's strong reputation and experienced management team provide a competitive advantage.

Financial Performance:

• Overall: Since its inception in 2019, MOM has delivered a cumulative return of 26.18%, outperforming the S&P 1500 Index's 14.55% return over the same period.
• Volatility: MOM experiences higher volatility compared to the S&P 1500 Index, exhibiting a higher beta of 1.08.

Growth Trajectory: The increasing popularity of smart beta strategies and the ETF's track record suggest a potential positive growth trajectory for MOM.

Liquidity:

• Average Daily Trading Volume: MOM has an average daily trading volume exceeding 180,000 shares, providing ample liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs associated with buying and selling the ETF.

Market Dynamics: Factors influencing MOM include overall market sentiment, performance of growth stocks, and changes in interest rates.

Competitors: Key competitors include IVE, MTA, and MTUM, with market shares of 0.7%, 0.5%, and 0.4%, respectively.

Expense Ratio: MOM has a relatively low expense ratio of 0.15%, making it a cost-effective investment option.

Investment Approach and Strategy:

• Strategy: MOM passively tracks the S&P 1500 Momentum Tilt Index, selecting stocks based on their historical price momentum and relative strength.
• Composition: The ETF primarily invests in large- and mid-cap US stocks across various sectors.

Key Points:

• Focuses on large- and mid-cap US stocks with strong momentum.
• Outperformed the S&P 1500 Index since inception.
• Experienced management team and strong issuer reputation.
• Relatively low expense ratio.

Risks:

• Increased volatility compared to broad market indices.
• Sensitivity to market fluctuations and potential underperformance in bear markets.
• Sector concentration risk.

Who Should Consider Investing:

• Investors seeking exposure to large- and mid-cap US stocks with higher growth potential.
• Investors comfortable with higher volatility in exchange for potentially higher returns.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI - 7.5:

MOM scores a strong 7.5 out of 10 based on an AI-powered fundamental analysis. This rating considers multiple factors, including historical performance, expense ratio, industry position, and future growth prospects. The ETF's strong track record, experienced management, and unique strategy contribute to its above-average rating. However, investors should be mindful of the associated volatility and potential sector concentration risks before investing.

Resources and Disclaimers:

• State Street Global Advisors website: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=MOM
• Morningstar: https://www.morningstar.com/etfs/arcx/mom/performance
• Yahoo Finance: https://finance.yahoo.com/quote/MOM/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Before investing in any security, conduct your own due diligence and consult with a financial professional.